Nagpur 24×7 Water Supply PPP
India's first city-wide 24×7 water PPP: performance-based O&M with metered billing — the reference for every HAM/PPP water scheme since.
Footage · Dr Naresh Bana · YouTube
₹387 cr (approx.)
Project value
JNNURM-supported capex plus performance O&M
25 years
Concession tenure
Long-dated O&M with output-linked payments
approx. 2.4 million
Population covered
Full municipal area of Nagpur
~50% to <15% (approx.)
NRW reduction target
Baseline non-revenue water vs contracted target
100% (target)
Metering coverage
Universal volumetric metering replacing flat tariff
10 zones (approx.)
Supply zones
Phased zone-wise implementation strategy
2011
NMC awards 25-year performance-based concession to Orange City Water (Veolia–Vishvaraj JV) after competitive bid.
2012
Concession commences; JNNURM grant support structured alongside O&M contract to fund network rehabilitation.
2014
Dharampeth pilot zone becomes first in India to achieve continuous 24×7 metered supply.
2016–2018
Phased rollout to additional zones; universal metering and leak-detection works accelerate.
2019–2021
Majority of city zones brought onto 24×7 supply; NRW levels reported to fall substantially from baseline.
2022 onward
Model referenced in DPRs for AMRUT 2.0 and state water-PPP frameworks across India.
Nagpur's 24×7 Water Supply PPP (2012–) was India's first city-wide, metered, pressurised water concession, structured as a performance-based O&M contract between Nagpur Municipal Corporation and Orange City Water (a Veolia–Vishvaraj JV), backed by JNNURM capital grants of approx. ₹387 crore. It proved that non-revenue-water reduction and volumetric billing could be delivered at municipal scale in India, becoming the template cited in nearly every subsequent HAM/PPP water and sanitation transaction.
As NMP 2.0 pushes water, sewerage and urban utility assets toward monetisation, Nagpur demonstrates a replicable structure: retain public ownership, transfer performance risk via long-tenor O&M contracts, and blend grant capital (now AMRUT 2.0) with private operational discipline. Cities structuring bulk-water, sewage-treatment or metering concessions can use this model to attract credible international operators while managing tariff-reform politics incrementally.
Structuring, finance and procurement lessons
01
Blend grant capex with performance O&M
JNNURM funded network rehabilitation while the operator was paid against measurable service KPIs (NRW, hours of supply, metering)—de-risking private capital while keeping public funding accountable to outcomes.
02
Phase by zone before city-wide scale-up
Piloting 24×7 supply in one zone before expanding built political and technical credibility, allowing tariff and metering resistance to be managed incrementally rather than city-wide at once.
03
Metering is the precondition for viable tariff reform
Volumetric billing only became defensible once universal metering was in place; structuring financing milestones around metering completion protects revenue assumptions in the concession model.
04
Anticipate political-economy risk in tariff design
Public opposition to 'water privatisation' required NMC to retain asset ownership and tariff-setting authority, with the operator strictly on an O&M/performance mandate—an important precedent for structuring around public perception.
05
Long tenor needs robust performance-payment linkage
A 25-year O&M concession requires clear, auditable KPI-linked payment mechanisms from year one to avoid renegotiation pressure once initial capex-heavy phases are complete.
Sources · Nagpur Municipal Corporation public disclosures and tender documents · Veolia India press releases and case-study publications · World Bank/ADB urban water sector reports referencing Nagpur PPP · Press coverage: Times of India, Down To Earth, Hindustan Times (Nagpur water PPP)
- Structuring performance-linked O&M/PPP contracts and KPI-based payment mechanisms for urban water and sanitation assets
- Advising ULBs on blending AMRUT/VGF grant funding with private concession structures to optimise risk transfer
- Benchmarking tariff and NRW-reduction targets against comparable Indian and global water PPP precedents
